YOUR EDUCATION LOAN CAN ALSO SAVE YOUR TAX

YOUR EDUCATION LOAN CAN ALSO SAVE YOUR TAX

If you have taken any education loan for the higher studies, you can save your tax. This deduction is allowed under section 80e of income tax act, 1961.

Section 80e provides deduction to an individual- Assessee in respect of nay interest on loan paid by him in the previous year out of his income chargeable to tax.

The loan must have been taken for the purpose of pursuing his higher education or for the purpose of higher education of his or her relative i.e. spouse or children.

Higher education means full time studies for any graduate or post graduate course in engineering, medicine, management or for post-graduate course in applied science or pure sciences including mathematics and statistics.

This education is allowed for computing the total income in respect of the initial assessment year ( i.e. the assessment year relevant to the previous year, in which the assessee starts paying the interest on the loan) and the seven assessment year immediately succeeding the initial year or until the interest paid in full by the assessee, whichever is earlier.

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HAVE YOU RECEIVE ANY MEDICAL FACILITY, THEN KNOW YOUR TAX IMPLICATIONS

HAVE YOU RECEIVE ANY MEDICAL FACILITY, THEN KNOW YOUR TAX IMPLICATIONS

ALOMOST EVERY EMPLOYER PROVIDE MEDICAL FACILITIES SAY MEDICAL PERQUISITE TO THEIR EMLOYEES FOR HEALTHY ENVIRONMENT AT THEIR WORKPLACE

IF ANY EMPLOYEE RECEIVES ANY MEDICAL FACILITY FROM HIS EMPLOYEE WHETHER IN THE FORM OF REIMBURSEMENT OR ANY FREE MEDICAL FACILITY IS TAXABLE AS PER INCOME TAX ACT, 1961

THE MEDICAL FACILITY MAY PROVIDE IN INDIA OR IN FOREIGN COUNTRIES, IN BOTH THE CASES THE TAX IMPLICATIONS ARE DISCUSSED BELOW,

1. IN CASE MEDICAL FACILITIES/TREATMENT PROVIDED IN INDIA

1. EXPENDITURE INCURRED OR REIMBURSED ON ANY MEDICAL TREATMENT PROVIDED TO AN EMPLOYEE OR ANY MEMBER OF HIS FAMILY IS FULLY EXEMPT WITHOUT ANY LIMIT FOR TREATMENT IN ANY HOSPITAL, DISPENSARIES etc. MAINTAINED EITHER BY EMPLOYER, GOVERNMENT, ANY LOCAL AUTHORITIES, IN HOSPITALS APPROVED BY GOVERNMENT OR APPROVED HOSPITALS FOR ANY SPECIFIED DISEASE LIKE CANCER HOSPITALS
2. HEALTH INSURANCE PREMIUM INCURRED OR REIMBURSED FOR INSURANCE ON HEALTH OF EMPLOYEES OR NAY MEMBER OF HIS FAMILY IS FULLY EXEMPT WITHOUT LIMIT.
3. REIMBURSEMENT BY THE EMPLOYER OF ANY AMOUNT ACTUALLY SPENT BY EMPLOYEE FOR OBTAINING HIS OR HIS FAMILY MEMBER’S TREATMENT IN ANY HOSPITAL OTHER THAN ABOVE, NURSING HOME OR IN A CLINIC IS NOT TAXABLE BUT UPTO MAXIMUM OF Rs 15,000 OR 20,000 I CASE OF SENIOR CITIZEN

DEDUCTIONS WHICH ARE ALLOWED UNDER INCOME TAX ACT, 1961

DEDUCTIONS WHICH ARE ALLOWED UNDER INCOME TAX ACT, 1961

FOLLOWING ARE THE EXPENSES WHICH ARE ALLOWED AS DEDUCTION

1. IN RESPECT OF INTEREST, IF ANY EXPENDITURE IS INCURRED BY WAY OF COMMISSION OR REMUNERATION FOR REALISATION OF SUCH INCOME.
2. IN RESPECT OF FAMILY PENSION, 33.33% OF PENSION OR Rs 15,000 WHICHEVER IS LESS IS ALLOWED AS DEDUCTION
3. IN RESPECT OF INCOME FROM LETTING, DEDUCTION OF REPAIR, INSURANCE AND DEPRECIATION IS ALLOWED
4. ANY OTHER EXPENDITURE INCURRED WHOLLY AND EXCLUSIVELY FOR EARNING SUCH INCOME

IF ANY INCOME IS EARNED AND IF ANY (AS DESCRIBED ABOVE) EXPENSES IS INCURRED IS ALLOWED AS DEDUCTION AS PER INCOME TAX ACT, 1961

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